Hasbro earnings increased sharply in the third quarter of 2026 as Magic: The Gathering quarterly revenue exceeded $600 million for the first time. The toy and gaming company reported revenue of $1,595.3 million, up 15% year over year, and raised its full-year financial outlook on October 20, 2026.
Key Takeaways
- Wizards and Digital Gaming revenue rose 31%, led by 34% growth in Magic: The Gathering.
- Adjusted operating profit increased 52% to $541 million; quarterly results included approximately $55 million in tariff refunds.
- Hasbro raised its annual revenue and margin forecasts and doubled its 2026 share repurchase target.
Table of Contents
- Hasbro earnings benefit from Magic's growth
- Tariff refunds contribute to stronger operating profit
- Higher annual guidance accompanies shareholder returns
- Conclusion
Hasbro earnings benefit from Magic's growth
Hasbro’s third-quarter results announcement showed reported diluted earnings per share of $2.77, compared with $1.64 a year earlier. Adjusted diluted earnings per share were $2.90. Operating profit reached $517 million, up from $341.1 million in the third quarter of 2025.
Wizards and Digital Gaming was the main growth engine. Magic: The Gathering benefited from The Hobbit and Reality Fracture releases, while digital and licensed gaming revenue increased 3%. Monopoly Go! contributed $41 million in quarterly revenue.
The Wizards segment generated $367 million in operating profit, up 46%, with an operating margin of 49%. Chief Executive Officer Chris Cocks said Hasbro had delivered its fourth consecutive quarter of double-digit revenue growth and expected a strong finish to 2026. That expectation remains management guidance, not a completed result.
| Item | Details |
|---|---|
| 2026 constant-currency revenue growth | Raised to 7–9% from 5–7%. |
| 2026 adjusted operating margin | Raised to 27–28% from 25–26%. |
| 2026 adjusted EBITDA | Raised to $1.575–$1.625 billion from $1.45–$1.50 billion. |
Tariff refunds contribute to stronger operating profit
Consumer Products revenue increased 4%, led by Marvel, KPop Demon Hunters and Transformers. The segment reported operating profit of $174 million and adjusted operating profit of $178 million, with the adjusted measure doubling from a year earlier.
Tariff refunds were a material contributor to quarterly profitability. Consumer Products operating profit and adjusted operating profit included a $48 million refund benefit, while Wizards included a $7 million benefit. The company also credited revenue growth, a favorable sales mix and cost productivity for its overall profit improvement.
Entertainment revenue rose 9%, driven by Family Brands. Its adjusted operating profit increased 63% to $18 million as the licensing mix improved. That quarterly growth contrasted with a 13% revenue decline for the segment over the first nine months, which Hasbro attributed to the nature and timing of deals.
Higher annual guidance accompanies shareholder returns
Hasbro raised all three headline measures in its 2026 outlook. The revenue forecast is stated in constant currency, making it distinct from the reported quarterly revenue growth rate.
The company returned $206 million to shareholders through dividends and share repurchases during the quarter, including $99 million in cash dividends. It also said it doubled its annual share repurchase target, although the supplied announcement did not specify the revised dollar amount.
Separately, Hasbro deployed $79 million toward debt reduction through open-market bond repurchases and U.S. Treasury purchases intended to prefund 2026 and 2027 bond maturities. Those actions are distinct from its shareholder distributions.
Conclusion
Magic’s growth supported Hasbro’s higher annual outlook, while tariff refunds also contributed to quarterly profitability. The next confirmed shareholder milestone is the November 18, 2026, record date for a $0.70-per-share dividend payable December 2.
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